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Word learning is critical for the development of reading and language comprehension skills. Although previous studies have indicated that word learning is compromised in children with reading disability (RD) or developmental language disorder (DLD), it is less clear how word learning difficulties manifest in children with comorbid RD and DLD. Furthermore, it is unclear whether word learning deficits in RD or DLD include difficulties with offline consolidation of newly learned words. In the current study, we employed an artificial lexicon learning paradigm with an overnight design to investigate how typically developing (TD) children (N = 25), children with only RD (N = 93), and children with both RD and DLD (N = 34) learned and remembered a set of phonologically similar pseudowords. Results showed that compared to TD children, children with RD exhibited: (i) slower growth in discrimination accuracy for cohort item pairs sharing an onset (e.g. pibu‐pibo), but not for rhyming item pairs (e.g. pibu‐dibu); and (ii) lower discrimination accuracy for both cohort and rhyme item pairs on Day 2, even when accounting for differences in Day 1 learning. Moreover, children with comorbid RD and DLD showed learning and retention deficits that extended to unrelated item pairs that were phonologically dissimilar (e.g. pibu‐tupa), suggestive of broader impairments compared to children with only RD. These findings provide insights into the specific learning deficits underlying RD and DLD and motivate future research concerning how children use phonological similarity to guide the organization of new word knowledge., We employed an artificial lexicon learning paradigm with an overnight design to investigate how typically developing (TD) children, children with reading disability (RD), and children with both RD and developmental language disorder (DLD) learned and remembered a set of phonologically similar pseudowords. Compared to TD children, children with RD experienced difficulty learning and remembering phonologically similar items, whereas children with both RD and DLD experienced difficulty learning and remembering phonologically dissimilar items in addition to phonologically similar items. These findings suggest one of the specific deficits underlying RD and DLD is difficulty establishing robust phonological representations for newly learned words.